Vitality Re VII Ltd Series 2016-1

Health insurance company Aetna has hailed the completion of its latest ILS transaction, Vitality Re VII Ltd. (Series 2016-1), which it says help it to “reduce its required capital” while gaining a $200m source of collateralized excess of loss reinsurance.

Health insurance firm Aetna’s $200m Vitality Re VII Ltd. (Series 2016-1) health insurance medical benefit ratio catastrophe bond deal has now been priced, with the coupon settling at the upper end of the initial guidance range.

Health insurance firm Aetna is returning to the capital markets in search of another $200 million or more of fully-collateralised reinsurance protection for losses under its health insurance medical benefit ratio, through a Vitality Re VII Ltd. (Series 2016-1) ILS issuance.